Ahchouch v. Lakeview Loan Servicing, LLC

CourtDistrict Court, S.D. New York
DecidedJanuary 10, 2025
Docket7:25-cv-00093
StatusUnknown

This text of Ahchouch v. Lakeview Loan Servicing, LLC (Ahchouch v. Lakeview Loan Servicing, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ahchouch v. Lakeview Loan Servicing, LLC, (S.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK -------------------------------------------------------------x NIZAR AHCHOUCH and ANDREA LUCAS,

Plaintiffs,

ORDER - against -

No. 25-CV-93 (CS) LAKEVIEW LOAN SERVICING, LLC and

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT,

Defendants. -------------------------------------------------------------x

Seibel, J. On January 7, 2025, at 11:18 a.m., Plaintiffs submitted an application for a temporary restraining order enjoining the sale of their residence, which was scheduled for January 7, 2025 at 2:30 p.m. as a result of a Judgment of Foreclosure and Sale entered in the New York Supreme Court, County of Dutchess on October 29, 2024. (See generally ECF No. 5.) On January 7, 2025, this Court denied the application in a text-only order, stating that the reasons for the denial would be “memorialized in due course.” (ECF No. 6.) This Order sets forth those reasons. The Complaint in this case asserts a claim for negligence seeking monetary damages, and also requests both declaratory relief “in the form of a judgment requiring the Defendants to allow the Plaintiffs to assume the subject Mortgage Loan,” (ECF No. 1 ¶ 45), and injunctive relief “staying the Defendants from proceeding with a foreclosure sale of the Property,” (id. ¶ 59).1 It is not clear how injunctive relief would be appropriate as a remedy should Plaintiffs succeed on

1 Although the Complaint frames the latter two requests as causes of action, (see ECF No. 1 at ¶¶ 37-45, 54-59), “declaratory judgments and injunctions are remedies, not causes of action,” Miller v. Wells Fargo Bank, N.A., 994 F. Supp. 2d 542, 558 (S.D.N.Y. 2014). their negligence claim, but in any event, to the extent that they could theoretically be entitled to an injunction, any such injunction would be improper under the Rooker-Feldman doctrine. Pursuant to the Rooker-Feldman doctrine, federal district courts may not exercise subject matter jurisdiction over actions that seek appellate review of state court judgments. The doctrine reflects the principle set forth in 28 U.S.C. § 1257 that the Supreme Court is the only federal court that has jurisdiction to review state court judgments unless otherwise provided by Congress. This comity principle seeks to prevent state and federal courts [from] fighting each other for control of a particular case.

The Second Circuit has established four requirements for applying the Rooker- Feldman doctrine: (1) the federal court plaintiff must have lost in state court; (2) the plaintiff must complain of injuries caused by the state court judgment; (3) the plaintiff must invite the district court to review and reject that judgment; and (4) the state court must have rendered judgment before federal district court proceedings commenced. Courts in this Circuit have consistently held that any attack on a judgment of foreclosure is clearly barred by the Rooker-Feldman doctrine.

Based on the foregoing, the Rooker-Feldman doctrine clearly applies to the within action: [Plaintiff] lost in the state court, is complaining of an injury – losing his home – which is directly related to the state court judgment, is seeking relief from that judgment by bringing this federal suit, and brought the instant action more than one year after the [New York] Supreme Court rendered a judgment of foreclosure. Such an action is squarely foreclosed by the Rooker-Feldman doctrine.

Done v. Wells Fargo Bank, N.A., No. 08-CV-3040, 2009 WL 2959619, at *3 (E.D.N.Y. Sept. 14, 2009); see Whitfield v. McCabe, Weisberg & Conway, P.C., No. 18-CV-7259, 2019 WL 332179, at *3 (E.D.N.Y. Jan. 25, 2019) (Rooker-Feldman doctrine applied where plaintiff (1) challenged state foreclosure judgment and holdover/eviction judgment; (2) the alleged injuries stemmed from judgments; (3) plaintiff sought review and rejection of the judgments; and (4) plaintiff filed federal complaint after the state court issued judgments) (collecting cases).2

2 Unless otherwise indicated, case quotations omit all internal quotation marks, citations, alterations, and footnotes. Plaintiffs here lost in the state court foreclosure action; are complaining of an injury – the loss of their residence – that is a direct result of the state court judgment of foreclosure and sale; are, in seeking the instant temporary restraining order, inviting this Court to review and reject that judgment; and the judgment of foreclosure and sale was entered on October 29, 2024, (see ECF No. 5-1), before the instant lawsuit was filed on January 3, 2025, (see ECF No. 1).

Accordingly, this Court lacks jurisdiction to grant the relief that Plaintiffs seek. See Worthy- Pugh v. Deutsche Bank Nat’l Trust Co., 664 F. App’x 20, 21 (2d Cir. 2016) (summary order) (“Under the Rooker-Feldman doctrine, federal courts lack subject matter jurisdiction over claims that effectively seek review of state court judgments.”); Brooks v. Aiden 0821 Cap. LLC, No. 19- CV-6823, 2020 WL 4614323, at *3 (E.D.N.Y. July 22, 2020) (“[C]ourts in this Circuit have consistently held that any attack on a judgment of foreclosure is clearly barred by the Rooker- Feldman doctrine.”); Ratcliffe v. Liberty Home Equity, No. 19-CV-1842, 2019 WL 6135446, at *2 (D. Conn. Nov. 19, 2019) (“[T]o the extent the Plaintiffs ask this Court to invalidate or to enjoin enforcement of a state court order, the Rooker-Feldman doctrine precludes federal courts

from reviewing adverse state court judgments, such as the one entered in the underlying state housing court matter.”).3 Even if this Court had jurisdiction, Plaintiffs have not shown that a temporary restraining order is warranted. “Temporary restraining orders and preliminary injunctions are extraordinary and drastic remedies, which are never awarded as of right, or as a routine matter.” Rush v. Hillside Buffalo, LLC, 314 F. Supp. 3d 477, 483-84 (W.D.N.Y. 2018). Courts in the Second

3 Plaintiffs do not bring a claim for, or even suggest, fraud preceding or during the state court foreclosure proceedings. See, e.g., D’Aguilar v. US Bank Trust NA, LSF9 Master Participation Trust, No. 24-CV-4498, 2024 WL 3850349, at *3 n.4 (S.D.N.Y. Aug. 6, 2024). They simply regard the state court decision as wrongly decided. Circuit apply the same standard for both temporary restraining orders and preliminary injunctions. See Mezu-Ndubuisi v. Univ. of Rochester et al., No. 24-CV-6387, 2025 WL 36070, at *7 (W.D.N.Y. Jan. 6, 2025). “A plaintiff seeking a temporary restraining order or preliminary injunction must demonstrate that: (1) there is a likelihood of success on the merits; (2) she will suffer irreparable injury if relief is not granted; (3) balancing of the equities tips in favor of the

moving party; and (4) entry of relief would serve the public interest.” Id. (citing Winter v. Nat. Res. Def. Council, Inc., 555 U.S. 7, 20 (2008)). “‘A showing of irreparable harm is the single most important prerequisite for the issuance of a preliminary injunction.’” Superb Motors Inc. v. Deo, No. 23-CV-6188, 2023 WL 5952145, at *3 (E.D.N.Y. Aug. 25, 2023) (quoting Faiveley Transp. Malmo AB v. Wabtec Corp., 559 F.3d 110, 118 (2d Cir. 2009)). Plaintiffs failed to meet the standard for a temporary restraining order because they have not shown irreparable harm.

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Related

Faiveley Transport Malmo AB v. Wabtec Corp.
559 F.3d 110 (Second Circuit, 2009)
Worthy-Pugh v. Deutsche Bank National Trust Company
664 F. App'x 20 (Second Circuit, 2016)
Rush v. Hillside Buffalo, LLC
314 F. Supp. 3d 477 (W.D. New York, 2018)
Miller v. Wells Fargo Bank, N.A.
994 F. Supp. 2d 542 (S.D. New York, 2014)

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Ahchouch v. Lakeview Loan Servicing, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ahchouch-v-lakeview-loan-servicing-llc-nysd-2025.